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Low interest rates and positive stock market movements are helping the upper end of Sydney’s property market gather pace, according to a senior economist.
Speaking at the second annual LJ Hooker Mosman Investment Seminar, Australian Property Monitors’ (APM) Dr Andrew Wilson said Sydney’s lower-end and middle markets have already seen rapid price growth, but now the lower north shore, northern beaches and city east are beginning to follow suit.
“The middle and lower ends of the market are starting to taper off, but the lower north shore is really firing up, with eight per cent growth in the March quarter,” Mr Wilson said.
According to figures released by APM, this compares favourably to property in Sydney’s western suburbs, which grew by just 3.9 per cent over the same period.
Dr Wilson said the prestige markets in Sydney aren’t currently as advanced in the price cycle as their highs in 2009 and 2010, and there is still room to move.
“There is no stopping the prestige market at the moment. There is still a lot of positive energy buzzing around with reports of the highest price growth since 2003,” he said.
“This positive atmosphere has worked as a mindset shift for possible buyers and sellers in that market, rather than an underpinning driver.
“We will see a lot more activity in the colder months than we are used to in the prestige market. The upper market is giving the middle markets a run for their money in terms of growth.”
Director of LJ Hooker Mosman Bernard Ryan said the area is increasingly drawing investors.
“Investors and upgraders have been honing in on the lower north shore since interest rates started trending down in November 2011, but activity really gathered pace in the last year,” Mr Ryan said.
“We’ve always had a strong contingent of locally-based clients, but interstate-based and overseas investors have increased their presence recently."